Oman Insurance launches Invest Protect and targets $40million over next 12 months
Oman Insurance Company (P.S.C) has launched a single-premium insurance plan called Invest Protect.
The plan provides investors with upside potential from global markets, by investing through a portfolio of low cost index building blocks including exchange-traded funds (ETFs) that are managed by BlackRock. ETFs are investment funds that aim to track an index cost effectively.
Oman Insurance Company has also partnered with Commerzbank, a leading international commercial bank with branches and offices in almost 50 countries, which provides a downside protection facility which ensures that, anytime of the policy term, the unit price of the investment will always be at least 80 per cent of the highest historical unit price.
“This is an absolutely unique product in the United Arab Emirates (UAE). Clients have the opportunity to benefit from the capital growth and importantly the clients’ downside is protected,” said Emmanuel Deschamps, Head of Life Insurance at Oman Insurance Company.
There are a number of other advantages: in the event of the client’s death, the proceeds from the life insurance cover associated with the policy are paid immediately to the client’s designated beneficiary, regardless of their country of residence. Clients can withdraw their funds at any time during the five years of the policy, although early withdrawals are subject to charges. Assets are held offshore by Euroclear, one of the largest custodians in Europe.
“Banks and IFAs will be key in distributing the product and we are already seeing strong demand. OIC and Commerzbank have been recently awarded the prestigious Insurance Deal of the Year by Structured Retail Products for Invest Protect,” said Rakesh Sudhakaran, Head of Bancassurance at Oman Insurance Company.
Christopher Hughes, Head of Structured Solutions, Commerzbank added that Invest Protect combines the key strengths of three organisations to produce an attractive investment option for clients offering downside protection.